Old vs New Tax Regime Comparator
Side-by-side comparison for FY 2025-26. Enter your income and deductions to find which regime saves you more.
Old vs New Tax Regime – FY 2025-26
From FY 2025-26 (Budget 2025), the new tax regime has become even more attractive with revised slabs and a higher standard deduction of ₹75,000. For most salaried taxpayers with taxable income below ₹12 lakh, the new regime results in zero tax due to the Section 87A rebate.
However, if you have significant deductions like home loan interest, 80C investments, or high HRA, the old regime could still save more tax. Use our comparator to find out which is better for your specific situation.
New Tax Regime Slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4L – ₹8L | 5% |
| ₹8L – ₹12L | 10% |
| ₹12L – ₹16L | 15% |
| ₹16L – ₹20L | 20% |
| ₹20L – ₹24L | 25% |
| Above ₹24L | 30% |
* Tax rebate u/s 87A: Zero tax for taxable income up to ₹12 lakh under the new regime.
Frequently Asked Questions
Which tax regime is better for me?
It depends on your deductions. If you have high Section 80C, HRA, home loan interest, and 80D deductions, the old regime may save more tax. If your deductions are low (under ₹3–4 lakh), the new regime is usually better due to lower slab rates.
What is the rebate under Section 87A in FY 2025-26?
Under the new tax regime for FY 2025-26, individuals with taxable income up to ₹12 lakh receive a full tax rebate under Section 87A, making their effective tax liability zero. Under the old regime, the rebate is available for income up to ₹5 lakh.
Can I switch between regimes every year?
Salaried individuals can switch between old and new regimes every year. However, if you have business income, switching back to the old regime after opting for the new one is restricted.
What deductions are available in the new tax regime?
The new regime offers very limited deductions: standard deduction of ₹75,000, employer NPS contribution, and a few others. Most Section 80C, 80D, HRA, home loan interest deductions are NOT available in the new regime.
What is the standard deduction?
Under the new tax regime for FY 2025-26, a standard deduction of ₹75,000 is allowed for salaried employees. Under the old regime, it is ₹50,000.
Is this calculator accurate for FY 2025-26?
Yes. This calculator uses the new tax slabs announced in Budget 2025, including the updated new regime slabs and the ₹75,000 standard deduction applicable from FY 2025-26.